The new factory will use Happiness Moon's advanced robotic automation to produce compostable foodservice items from bagasse, a sugar cane pulp derivative
The new factory in Taiwan will manufacture compostable foodservice products. (Credit: Dennis from Pixabay)
US-based packaging firm Karat Packaging and disposable foodservice products and machinery supplier Happiness Moon have formed a definitive joint venture, Green Earth Technology, to construct a new facility in Taiwan.
With an initial investment of around $6m, Karat Packaging will hold a 49% interest in Green Earth Technology.
Scheduled to be operational in the second half of 2022, the new 180,000ft² factory will use Happiness Moon’s advanced robotic automation to produce compostable foodservice items from bagasse, a sugar cane pulp derivative.
Leveraging Happiness Moon’s machinery and technologies, the new plant is anticipated to produce approximately 7,560 tonnes of products next year.
About half of the factory’s output, which includes take-out boxes, plates, bowls, tableware, and other bagasse products, will be reserved for Karat Packaging’s customers while the remaining will be shipped to other consumers in Asia and Europe.
Karat Packaging chief executive officer Alan Yu said: “Our investment demonstrates Karat’s commitment and leadership position in providing eco-friendly disposable foodservice products.
“Most bagasse products in the United States are currently imported from China. The joint venture will enhance Karat’s vertical integration in its supply chain and accelerate growth and margin expansion.
“Our objective in the next several years is to become the leading manufacturer of bagasse foodservice products for the US market.”
Yu added: “After thoroughly assessing the technology and robotic capability in Taiwan, which we believe will enhance efficiencies and productivity, we plan to bring the proprietary manufacturing processes to the US and build a first-of-its-kind bagasse production plant.
“Expanding the use of environmentally friendly, compostable products, which have a lower carbon footprint, represents a critical step to help businesses and consumers transition toward sustainable living.
“Karat’s unique complementary operating platform of supplier network and manufacturing enables us to provide customers broader product offerings and customisation, with shorter lead times.”